Juanita Is a Sole Proprietor Who Has Some Outstanding Receivables

question 24

Multiple Choice

Juanita is a sole proprietor who has some outstanding receivables she wishes to sell.The receivables have a $16,000 FMV and a basis of $10,000.Juanita sells the receivables for $12,500.What gain or loss does Juanita recognize on the sale?

• A)$3,500 capital loss.
• B)$3,500 ordinary loss.
• C)$2,500 capital gain.
• D)$2,500 ordinary gain.

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Definitions:

Color Vision Deficiency

A condition impacting the ability to perceive colors accurately, commonly referred to as color blindness.

X Chromosome

One of the two sex chromosomes, present in both males (XY) and females (XX), involved in determining sex and other genetic traits.

Basilar Membrane

A key structure within the cochlea of the inner ear, playing a critical role in the perception of sound by vibrating in response to frequencies.

Rods

Specialized cells in the retina that are sensitive to low light levels and are responsible for peripheral and night vision.